SEBON Expands Its Pipeline By Adding 66% Right Shares of NLG Insurance

The right shares of NLG Insurance Company Limited (NLG) have been added to the Securities Exchange Board of Nepal's (SEBON) pipeline for first evaluation. On Kartik 02, 2080, the application was turned in to the board.

By issuing 9,631,220.22 (10:6.6) units of right shares to its current owners, the non-life insurance firm hopes to issue 66% of its right shares, valued at Rs. 96.31 crores. The paid-up capital will only reach Rs. 2.42 Arba with the issuing of the proposed right shares, which is equal to Rs. 96.31 Crores. This is insufficient to meet the regulatory authority's mandate to reach Rs. 2.50 Arba by the end of Ashad, 2080.

In order to make up the difference, NLG Insurance Company intends to issue bonus shares to cover the remaining balance, bringing its paid-up capital to Rs. 2.5 Arba.

The issue manager is named as Laxmi Capital Market Limited.